Thursday January 10 Ag News

NEBRASKA EXTENSION OFFERS LAND APPLICATION TRAINING IN FEBRUARY

Turning manure nutrients into better crop yields while protecting the environment will be the focus of eight Nebraska Extension workshops across the state in February.

“The workshops will help livestock producers put to use the nutrient management planning requirements of Nebraska’s Department of Environmental Quality regulations and increase the economic value of manure,” said Leslie Johnson, animal manure management coordinator at the University of Nebraska–Lincoln.

Participants who attend the daylong event will receive NDEQ land application training certification. Livestock producers with livestock waste control facility permits received or renewed since April 1998 must be certified, and farms must complete an approved training every five years. Recertification will occur during the first two hours of the land application training. Farm personnel responsible for land application of manure are encouraged to attend either the initial or recertification portion of the training.

The morning portion of the workshops will consist of a two-hour program that includes updates on changing regulations and other manure management topics, such as using weather forecasting to decrease odor risk and transferring manure off a livestock operation. All farm staff responsible for implementing the farm’s nutrient plan are encouraged to attend.

Pre-registration is required for all workshops. The initial training workshop costs $60 per operation (includes one representative) plus $15 for each additional participant to cover local expenses, including lunch. The recertification portion of the workshop costs $30.

Pre-register at least eight business days before the workshop at http://go.unl.edu/lat or by using the form in the program brochure at https://go.unl.edu/lat-2019.

The workshops are sponsored by the Nebraska Extension Animal Manure Management Team, which is dedicated to helping livestock and crop producers better utilize manure resources for agronomic and environmental benefits.

The workshops begin at 9 a.m. Dates and locations are:
> Alliance: Feb. 5, extension office, 415 Black Hills Ave.
> O’Neill: Feb. 6, extension office, 128 North 6th St., Suite 100
> Curtis: Feb. 7, education center, 404 E. 7th St., Room 137
> West Point: Feb. 20, Nielsen Center, 200 Anna Stalp Ave.
> Lexington: Feb. 20, extension office, 1002 Plum Creek Parkway
> Columbus: Feb. 21, extension office, 2715 13th St.
> Wilber: Feb. 26, extension office, 306 W. 3rd St.
> York: Feb. 27, 4-H Building, 2345 Nebraska Ave.

For additional information on the workshops and other resources for managing manure nutrients, visit http://manure.unl.edu or contact Johnson at 402-584-3818 or ljohnson13@unl.edu.



Tax credit seeks to support Nebraska veteran farmers
Sen. Carol Blood, of Bellevue, introduced LB 5, Change the Beginning Veteran Farmer Tax Credit Act, today at the state capitol. The bill seeks to expand Nebraska’s existing beginning farmer tax credit program by adding a 1 percent tax incentive for property owners who rent their agricultural land to a qualified beginning veteran farmer.

“A veteran’s sense of service and work ethic draw a distinct parallel to the skills and dedication required for successful farming and ranching,” said Jordan Rasmussen, policy manager with the Center for Rural Affairs. “However, access to the land and financial resources needed to transition from military service to farming can pose a significant challenge.”

Under current statute, a 10 percent credit on cash rent, or 15 percent credit on the value of a sharecrop or cow-calf share rent, is available to the property owner when they rent to a qualified beginning farmer. The incentive is issued as a refundable income tax credit. The proposed revision would increase these incentives to 11 percent and 16 percent if the property is rented to a qualified beginning veteran farmer.

“Encouraging agricultural property owners to rent farm land to veterans allows them to pursue a career in farming,” Rasmussen said. “As farmers and landowners look to transition their operations, renting to a beginning veteran farmer is not only an investment in an individual, but also an investment in rural communities and the state’s economy.”

Released today, a fact sheet on this proposed credit is available at cfra.org/publications/BeginningVeteranFarmerTaxCredit. The Center for Rural Affairs endorses the Beginning Veteran Farmer Tax Credit.



CHS Reports $347 Million First Quarter Fiscal 2019 Net Income

CHS Inc. (NASDAQ: CHSCP, CHSCO, CHSCN, CHSCM, CHSCL), the nation's leading farmer-owned cooperative and a global energy, grains and foods company, today reported a net income of $347.1 million for the first quarter of fiscal 2019.

"Our strong first quarter results position us well as we start our 2019 fiscal year," said Jay Debertin, CHS president and chief executive officer. "We are focused on making CHS our customers' first choice by advancing our technology solutions and equipping employees to meet the changing needs of our customers around the world. We will do this while maintaining financial discipline and rigor."

Key financial highlights for the quarter that ended Nov. 30, 2018, include:
-    Net income of $347.1 million, an increase of $159.9 million from the restated first quarter of fiscal 2018.
-    Consolidated revenues of $8.5 billion, a $452.4 million increase from the restated first period of fiscal 2018.
-    Pretax income of $367.2 million, an increase of $159.4 million from the restated first period of fiscal 2018.
-    Improved crude oil pricing, which drove higher refining margins.
-    Favorable market conditions in the crop nutrients business, which resulted in higher margins.
-    Improved earnings in the company's CF Nitrogen, Ardent Mills and Ventura Foods investments.

First Quarter Fiscal 2019 Segment Results
The following segment results were reported for the first quarter of fiscal 2019 as compared to first quarter fiscal 2018.

ENERGY
The $112.0 million increase in Energy pretax earnings reflects the following:
-    Improved market conditions in the refined fuels business driven by favorable crude oil pricing.

AG
The $5.1 million increase in Ag pretax earnings was driven by the following:
-    Improved pricing within the company's crop nutrients and processing and food ingredients businesses and volume increases within grain and processing.

NITROGEN PRODUCTION
The $18.0 million increase in Nitrogen Production pretax earnings reflects the following:
-    Improved margins within the Nitrogen Production business driven by increased sales prices of urea and UAN, which are produced and sold by CF Nitrogen.

CORPORATE AND OTHER
The $24.3 million increase in Corporate and Other pretax earnings reflects the following:
-    Higher earnings from the company's investments in Ventura Foods, LLC and Ardent Mills, LLC as well as increased interest revenue from the company's financing business.

In late December 2018, CHS, a 25 percent owner of West Central Distribution, exercised its option to purchase the remaining 75 percent of the respected crop protection distribution company and is in the process of completing due diligence and satisfying regulatory, legal and other requirements.



New Research Reveals How Americans are Eating Tonight

Today, the National Pork Board released the first report from its ambitious and comprehensive Insight to Action research program. The report, Dinner at Home in America, examines the contextual occasions in which Americans are eating dinner in the home. The research identifies areas of growth opportunity for pork, serving up a bold new challenge to the pork industry: innovate or risk losing relevance with today’s – and more importantly tomorrow’s – consumer.

“People live, shop and eat differently today. The pork industry has tremendous momentum with consumers, and that can be leveraged further through innovation in product development, bringing contemporary eating solutions to consumers,” said Jarrod Sutton, vice president of Domestic Marketing for the National Pork Board. “This research helps us intimately understand the needs and constraints that influence consumer dining choices, and provides a clear path for industry innovation that is rooted in data.”
 
A First-Ever Research Approach for the Industry
Dinner at Home in America is the first of several reports the National Pork Board will publish in 2019 as part of the Insight to Action research program. The research approach, which combines 10,000 interviews with demographic and spending data to provide a comprehensive look at how U.S. consumers eat, is a first-ever for the meat industry.

Altogether, the National Pork Board uncovered nine unique dining occasions, or needs states, happening in homes on any given night of the week, ranging from solo dining to celebrating with extended family. During the course of any week, the same person can experience multiple eating occasions as their needs throughout the week change.

Sutton emphasizes this research is groundbreaking because it goes further to answer questions around what people eat and why.

“We are looking at who is at the dinner table, but we move beyond that to pinpoint the varied dinner occasions occurring every night,” he said.  “With these insights, the industry can better understand the needs, behaviors and influences for each dining occasion. Most importantly, the research identifies opportunities for the industry to adapt and innovate.”

“Through its extensive research and analysis, the National Pork Board has curated provocative insights that the U.S. pork industry can act upon to best position pork to consumers,” said Steve Rommereim, National Pork Board president and a pig farmer from Alcester, South Dakota. “This is data that everyone at every step of the pork supply chain can use to better meet consumer needs and grow their business.”
 
Actionable Insights to Drive Innovation
The Dinner at Home in America report provides the food industry a veritable roadmap for product innovation and positioning. The research identifies opportunities to respond to changing consumer behaviors and drive category growth in three areas:
-    Health: Educate consumers more effectively about the known health benefits, nutrient density and protein content of fresh and packaged pork cuts
-    Simplicity and Ease: Innovate packaging and cuts to keep pace with evolving consumer needs and demand for convenience best illustrated through portion size, precooked or pre-seasoned options, and cooking and temperature directions.
-    Versatility: Create meal solutions with pork as a key ingredient, moving beyond the old school thought of pork as a center-of-the-plate option only. Consumers seek diversity in their protein choice – from tacos to sandwiches and pasta to casseroles.

“These insights have influenced a new marketing strategy for the Pork Checkoff designed to address key perceptions about our product: tasty, healthy, easy, safe, and sustainable,” Sutton said. “The foundation for all of this work is research and data first.”

For more information on the National Pork Board’s Insight to Action research, Dinner at Home in America research, or to download the full report, visit www.Pork.org/marketing.
 
About the Research
Survey respondents were members of Numerator/InfoScout’s shopper panel, and were selected to participate based upon past recorded purchases. Each respondent was age 18+, personally eats meat, and has at least some influence in buying or preparing food for the household. The survey, commissioned on behalf of the National Pork Board, was administered by
C+ R Research to 10,163 adults.



Corn Quality, Transparency Takes Center Stage in Record-Breaking Southeast Asia Roadshow

USGC Southeast Asia staff kicked off the annual corn harvest quality roadshow in six cities in the Philippines, Vietnam, Myanmar, Thailand and Indonesia.

Building on the momentum of the U.S. Grains Council’s (USGC’s) recently issued 2018/2019 Corn Harvest Quality Report, a worldwide series of rollouts and road shows kicked off at the end of November in five Southeast Asian countries focused on transparency and quality with key buyers.

“The sooner we can get this information out there to buyers, the more likely we can set U.S. corn and co-products up for successful sales in the region,” said Manuel Sanchez, USGC Southeast Asia regional director. “The U.S. Grains Council is the only organization that puts together an exhaustive quality report like this, and it goes a long way to solidify relationships with grains buyers in countries around the world.”

The annual report provides an early look at the grade factors established by the U.S. Department of Agriculture (USDA), moisture content and additional quality characteristics as a means of facilitating continued export expansion and food security through trade.

The Southeast Asia roadshow boasted an unprecedented 370 attendees and included stops in the Philippines, Indonesia, Vietnam and Thailand. It culminated in Council participation in Myanmar’s largest livestock show.

“Different countries have different needs. In Southeast Asia, we include corn co-products in the mix because of the high level of interest in supplementing poultry and livestock diets,” Sanchez said. “In the Philippines, we have recorded sales of both corn and sorghum, we promoted distiller’s dried grains with solubles (DDGS) and corn gluten meal in Indonesia, corn and DDGS in Vietnam, DDGS in Thailand, and all feed grains in Myanmar.”

The roadshows are intended to promote sales as well as provide time for relationship-building, including allowing attendees to make direct connections with U.S. farmers, and trade servicing with technical and market information.

This first roadshow of the season included U.S. grains subject matter expert Dr. Joe Hancock, emeritus professor at Kansas State University, who presented information on the benefits of using U.S. sorghum and DDGS in broiler and swine diets, as well as Minnesota corn farmer and Minnesota Corn Research and Promotion Council delegate Dwight Mork, who gave an overview of his farming operation and practices from his most recent crop year.

Southeast Asia represents one of the fastest growing markets for U.S. corn and co-products like DDGS, corn gluten meal and corn gluten feed. In 2017/2018, Vietnam was the seventh largest market for U.S. corn and the fourth largest market for U.S. DDGS, with Thailand and Indonesia ranking fifth and sixth, respectively. Indonesia was also the sixth largest market for corn gluten feed/meal.



NCGA Recognizes NAFTA Benefits
   
The National Corn Growers Association is committed to creating new market opportunities for U.S. corn. This includes expanding market access for U.S. corn around the globe and securing our most important markets by injecting certainty back into our relationships with Mexico and Canada.

The North American Free Trade Agreement (NAFTA) has been an unequivocal success for American corn farmers. Since 1994, U.S. corn exports to these regional partners have increased 300 percent and Mexico is now the top export destination for U.S. corn.

Corn exports to Mexico were up nearly 13 percent for 2017/2018 from the previous year, reaching a record high of 15.7 million tons or 618 million bushels.

In 2016 alone, more than 17.3 million metric tons of corn and corn co-products were exported to Mexico and Canada, valued at $3.2 billion. These exports produced $4.1 billion in economic activity as well as supported 25,000 jobs and 300,000 farms.

Now, as Congress looks to consider the new U.S.-Mexico-Canada Agreement, it is imperative the Administration not withdraw from NAFTA before a new agreement is ratified. The data speaks for itself – these markets are vital to U.S. corn farmers and too important to put at risk.



USDA to Send Trade Relief to JBS, Brazil’s Largest Meatpacker

The U.S. Department of Agriculture (USDA) will purchase roughly 1.8 million pounds of pork products from Brazilian firm JBS, one of the world’s largest meatpackers, using funds appropriated by the Trump Administration to help American family farmers and ranchers weather the administration’s trade war.

National Farmers Union President Roger Johnson released the following quote in response to the news:

“The irony that this money that is supposed to be supporting American producers is actually going to the behemoth Brazilian meatpacking firm JBS is not lost on the American family farmer. USDA should not be sending money—directly or indirectly—to Brazil, the country that has benefitted the most from the President’s trade wars. In fact, because of our strained relations with China, Brazilian farmers have received a $2 price premium on their soybeans compared to American farmers.

“Farmers Union strongly urges USDA to reject bids by companies owned by JBS to receive money from the trade aid program. This money should instead be directed to the American farm families struggling with depressed prices and lost markets because of the administration’s reckless trade strategy.”



Brazil’s JBS to Receive $5 Million in U.S. Farm Bailout Money

It has been reported that the U.S. Department of Agriculture (USDA) will award $5 million in U.S. taxpayer funds to Brazilian-owned meatpacking corporation, JBS, under the bailout program meant to help American farmers hurt by the trade war.

In November 2018, Chinese-owned Smithfield Foods rescinded its bid for bailout money after a backlash on Capitol Hill over the award. Organization for Competitive Markets (OCM) is now circulating a petition calling on USDA and Congress to the halt payments to JBS.

“It is a sad day when our own government will open its doors for global meatpacking corporations while keeping them closed during this government shutdown to America’s family farmers. Secretary Perdue told farmers the USDA bailout would help them weather the trade war but instead is providing the world’s largest and most corrupt meatpacker with payments that will help JBS continue harming U.S. farmers and threatening our food supply,” OCM said.

JBS’ illegal and abusive activity runs deep. In a decade-long scheme, the meatpacker bribed more than 1,800 Brazilian politicians, which JBS admitted helped them take over the U.S. beef market. Meanwhile, in 2017, JBS was caught exporting rotten meat worldwide and trying to cover up the stench using cancer-causing acid products. In 2018, 12 million pounds of JBS ground beef were recalled and 246 people were sickened in the U.S. due to salmonella poisoning. Evidence shows the salmonella outbreak was caused by JBS’ standard practice of allowing sick dairy cows into the beef supply. In 2018, USDA found JBS had ripped off U.S. cattle producers at three separate slaughter facilities by shorting them on payments for their cattle, and while the JBS abuses were extensive, USDA settled the claims for a mere $50,000 penalty. USDA is now paying back JBS 100 fold with its $5 million award.

“While elected officials debate border security, JBS’ abusive takeover of the U.S. beef market and the resulting threat to our food supply should be at the forefront of the conversation. Instead, our government is handing JBS the taxpayer money meant for U.S. farmers,” OCM concluded.



Roberts to Lead Senate Ag Committee; Republicans Named

U.S. Senator Pat Roberts, R-Kan., has once again been tapped to lead the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, during the 116th Congress.

"I am honored to be chosen to lead the Agriculture Committee for another two years," said Roberts. "We just succeeded in passing the bipartisan, bicameral 2018 Farm Bill, and I look forward to overseeing the Agriculture Department's implementation."

"As I said when I first became chairman of this Committee in 2015, my first priority is the American farmer and rancher. That laser focus has not changed one bit. We will continue to hold hearings, consider legislation in a fair and transparent manner, and consider nominations."

Republican members of the Senate Agriculture Committee include:
- Mitch McConnell, Kentucky
- John Boozman, Arkansas
- John Hoeven, North Dakota
- Joni Ernst, Iowa
- Cindy Hyde-Smith, Mississippi
- Mike Braun, Indiana
- David Perdue, Georgia
- Chuck Grassley, Iowa
- John Thune, South Dakota
- Deb Fischer, Nebraska

"I'm pleased that Senator Stabenow will also continue her important role in the Agriculture Committee as ranking member. Working with Senator Stabenow on past Farm Bills, and various legislation in between, we have proven that we are the least partisan Committee, reaching across the aisle where we can to deliver results for rural America."



Reps. Smith, Bishop Introduce Estate Tax Repeal Bill

Recently introduced Farm Bureau-supported legislation would give farmers, ranchers and many others permanent relief from estate taxes. While the current $11 million per-person exemption protects most farmers and ranchers from the devastating consequences of estate taxes, the exemption is scheduled to drop back down to $5.5 million per person in 2025.

“The uncertainty caused by the temporary nature of the exemption complicates succession and long-term business planning. And it means that some farmers and ranchers will have to continue to divert resources from their agricultural operation for estate tax planning just in case there is no extension of the exemption,” American Farm Bureau Federation President Zippy Duvall said in a Jan. 9 letter to Reps. Jason Smith (R-Mo.) and Sanford Bishop (D-Ga.), sponsors of the Death Tax Repeal Act (H.R. 218).

Farmers and ranchers have benefited greatly from the $11 million per-person exemption indexed for inflation, along with continued stepped-up basis and portability between spouses, Duvall noted.

“Instead of spending money on life insurance and estate planning, more farmers can expand their businesses, upgrade buildings and purchase needed equipment and livestock. More importantly, when a family member dies the family can continue farming without having to sell land, livestock or equipment to pay the tax,” he wrote.

The temporary doubling of the estate tax exemption to $11 million per person was enacted in 2017 in the Tax Cuts and Jobs Act.



New Poll: Consumers, by Nearly 3-to-1 Margin, Want FDA to End Mislabeling of Fake Milks

New national survey data released today finds that consumers – by a nearly 3-to-1 margin – want the U.S. Food and Drug Administration (FDA) to enforce existing regulations and prohibit non-dairy beverage companies from using the term “milk” on their product labels. FDA is soliciting public comment regarding front-of-package dairy labeling regulations through Jan. 28.

The national survey conducted by IPSOS, a global market research and consulting firm, found that 61 percent of consumers believe FDA – which currently defines “milk” as the product of an animal, but doesn’t enforce that labeling rule – should restrict non-dairy beverage companies from using the term “milk” on their product labels. Only 23 percent said FDA should not limit the term “milk” to dairy products, while 16 percent were uncertain.

“Consumers have spoken, and they are clear in their desire for FDA to enforce its own rules,” said National Milk Producers Federation (NMPF) President and CEO Jim Mulhern. “FDA must listen to their voice and end deceptive labeling by plant-based beverage manufacturers.”

Plant-based beverage brands regularly exploit lax regulatory enforcement to label their products as “milk,” and polling data shows that consumers are widely misinformed by mislabeling. A survey by IPSOS from last August showed that 73 percent of consumers erroneously believe that almond-based drinks had as much or more protein per serving than milk. In a separate poll from the International Food Information Council Foundation released in October, one-quarter of consumers either thought almond drinks contained cow’s milk or weren’t sure.

The newly announced online IPSOS poll – commissioned by NMPF – was conducted Jan. 4-7, 2019, and surveyed 1,005 adults nationwide.

The question was: “The U.S. Food and Drug Administration currently defines ‘milk’ as the product of an animal, but doesn’t enforce that labeling rule. Do you believe that the FDA should restrict non-dairy beverage companies from using the term ‘milk’ on their product labels?”

About the study:
For the survey, a sample of 1,005 adults 18+ from the continental United States, Alaska and Hawaii were interviewed online in English. The source of these population targets is U.S. Census 2016 American Community Survey data. The sample drawn for this study reflects fixed sample targets on demographics. Post-hoc weights were made to the population characteristics on gender, age, race/ethnicity, region, and education.

Statistical margins of error are not applicable to online polls. All sample surveys and polls may be subject to other sources of error, including, but not limited to, coverage error and measurement error. Where figures do not sum to 100, this is due to the effects of rounding. The precision of IPSOS online polls is measured using a credibility interval. In this case, the poll has a credibility interval of plus or minus 3.5 percentage points for all respondents. Ipsos calculates a design effect (DEFF) for each study based on the variation of the weights, following the formula of Kish (1965). This study had a credibility interval adjusted for design effect of the following (n=1,005, DEFF=1.5, adjusted Confidence Interval=+/-5.0 percentage points).



Summit speaker lineup set to provide solutions to challenges facing animal ag

The agenda is now available for the Animal Agriculture Alliance’s 2019 Stakeholders Summit, themed A Seat At The Table. The lineup will tackle diverse topics from understanding consumer perceptions to engaging influencers to protecting farms and other agricultural operations from activist threats. The event will be held May 8-9 at the InterContinental at the Plaza Hotel in Kansas City, Missouri. Early registration discounts are available through February 1. To view the agenda and register, visit https://www.animalagalliance.org/summit.

Andy Curliss, CEO of North Carolina Pork Council, will close the event with a session titled “Farmers Under Fire.” Curliss will provide a deep and broad look, with several specific case studies (including the recent nuisance lawsuit verdicts in North Carolina), at how significant coordinated advocacy is threatening animal agriculture. He will offer an unprecedented look at the ongoing attacks against the industry and provide attendees with insights on how to protect their livelihood. “If you think $550 million in jury verdicts in North Carolina are just about pigs in North Carolina, you are mistaken,” Curliss said. “The industry as a whole can learn a lot from the issues we are dealing with.”

Prior to joining the N.C. Pork Council, Andy led the public affairs and strategic communications division at Gelia, Wells & Mohr, a national marketing and communications agency, where he advised executive-level clients on matters concerning business, public policy and communications. Curliss began his career in journalism and has two decades of experience as an editor and investigative reporter.

The annual Stakeholders Summit brings top thought leaders in the industry together to discuss hot-button issues and out-of-the-box ideas. The 2019 event will focus on engagement between key stakeholders in restaurant, retail and foodservice companies, farms and ranches, government agencies, agribusinesses, and agriculture and food associations.

“Unfortunately, preparing for legal attacks from activist groups is a necessity for everyone in animal agriculture,” said Kay Johnson Smith, Alliance president and CEO. “We’ve followed the nuisance lawsuits in North Carolina closely and are very concerned about the precedent they may be setting. Mr. Curliss’ unique perspective will be highly valuable for our attendees as they prepare for similar tactics being used in their industries and communities.”

Be sure to check the Summit website www.animalagalliance.org/summit for the most up-to-date Summit information. You can also follow the hashtags #AAA19 for periodic updates about the event. For general questions about the Summit please contact summit@animalagalliance.org or call (703) 562-5160.

Thank you to our 2019 Summit sponsors: Watt Global Media, Farm Journal Media, Meatingplace, National Provisioner, American Feed Industry Association, National Pork Producers Council, National Cattlemen’s Beef Association, National Pork Board, Smithfield, National Turkey Federation, Farm Credit, Country Folks, National Biodiesel Board, Summit Livestock Facilities, United Egg Producers, Cobb-Vantress, Inc., Council for Biotechnology Information, Protect the Harvest, American Veal Association, BPI Technology, Inc., Kemin, National Chicken Council, Live Oak Bank, North Carolina Farm Bureau, Vivayic, Eggland’s Best, Food Industry Environmental Network, Kansas Farm Bureau and Kansas Soybean.

The Alliance also thanks the following members for their continued support of Summit and other Alliance programs: U.S. Poultry & Egg Association, Merck Animal Health, Charleston|Orwig, Diamond V, Zoetis, Alltech, Inc., Aviagen Group, Bayer Animal Health, Dairy Farmers of America, Genus PLC - PIC/ABS, Hendrix Genetics, Hy-Line North America LLC, Iowa Soybean Association, Midwest Dairy, Nutrien, Provimi North America, Inc. and Seaboard Foods LLC.